Correlation Between Affimed NV and Alector
Can any of the company-specific risk be diversified away by investing in both Affimed NV and Alector at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Affimed NV and Alector into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affimed NV and Alector, you can compare the effects of market volatilities on Affimed NV and Alector and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Affimed NV with a short position of Alector. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affimed NV and Alector.
Diversification Opportunities for Affimed NV and Alector
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Affimed and Alector is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Affimed NV and Alector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alector and Affimed NV is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Affimed NV are associated (or correlated) with Alector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alector has no effect on the direction of Affimed NV i.e., Affimed NV and Alector go up and down completely randomly.
Pair Corralation between Affimed NV and Alector
Given the investment horizon of 90 days Affimed NV is expected to generate 0.95 times more return on investment than Alector. However, Affimed NV is 1.05 times less risky than Alector. It trades about -0.07 of its potential returns per unit of risk. Alector is currently generating about -0.16 per unit of risk. If you would invest 337.00 in Affimed NV on August 28, 2024 and sell it today you would lose (37.00) from holding Affimed NV or give up 10.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affimed NV vs. Alector
Performance |
| Timeline |
| Affimed NV |
| Alector |
Affimed NV and Alector Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affimed NV and Alector
The main advantage of trading using opposite Affimed NV and Alector positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affimed NV position performs unexpectedly, Alector can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alector will offset losses from the drop in Alector's long position.| Affimed NV vs. Pieris Pharmaceuticals | Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals |
| Alector vs. Passage Bio | Alector vs. Black Diamond Therapeutics | Alector vs. Revolution Medicines | Alector vs. Stoke Therapeutics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |